Mon Sep 30 04:01:00 UTC 2024: ## China’s Peaceful Rise: Yuan Domination, BRICS Power, and a New World Order

**Hong Kong, China** – As the West grapples with economic decline and political instability, China is steadily gaining global influence, according to geopolitical analyst Pepe Escobar. He argues that China’s “peaceful development” strategy, characterized by a focus on mutual prosperity and global infrastructure projects like the Belt and Road Initiative, is leading to a shift in the world’s economic center of gravity from the West to the East.

**Economic Realignment:** Research by Danny Quah, dean of the Lee Kuan Yew Institute in Singapore, shows that Asia’s share of global GDP has surged from 11.5% in 1980 to 25% in 2020, with China accounting for the largest portion at 18%. This dramatic shift is driven by the yuan’s growing dominance in international trade. China is rapidly de-dollarizing, and the yuan is now the de facto reserve currency for Russia.

**Hong Kong’s Crucial Role:** Hong Kong, with its sophisticated financial institutions, is becoming a key hub for yuan-denominated transactions, attracting global investors seeking to avoid US sanctions. The Special Administrative Region processes nearly 80% of all offshore yuan settlements and is expected to become a leading center for yuan-denominated bonds.

**BRICS Power and a New Order:** While China’s influence is undeniable, some argue that the BRICS group (Brazil, Russia, India, China, and South Africa) needs to take bolder steps to challenge the Western-dominated world order. Escobar suggests that Russia and China should consider creating a yuan/ruble/gold alliance as an alternative to the US-led financial system.

**A Choice for the Global Majority:** The world is facing a stark choice, according to Escobar: nuclear destruction under a Western-dominated order or an imperfect but evolving new order led by a powerful BRICS alliance. The global majority must face this reality and act decisively.

**China’s Silent Rise:** Despite the challenges, China continues to advance its peaceful rise. As Escobar observes, “like a river undisturbed while traversing a rocky wilderness, China silently flows away on its path to peaceful primacy.”

This shift in global power dynamics presents a new era for the world, one where China and its allies may reshape the global order, leaving the West grappling with a loss of economic and political influence.

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